California Employers Must Carry On-the-Job Injury Insurance

California businesses must carry workers’ compensation insurance for every employee, even just one. Group or personal health insurance is not a substitute.

Workers’ compensation is oldest social insurance program in the U.S., adopted by most states in early part of the 20th century.  The coverage is intended to ensure employees receive swift and sufficient medical treatment for on-the-job injuries and job-related illnesses. It is a “no-fault” insurance, i.e., it does not matter whether the employment-related accident or sickness was the due to the employee’s inattention, an unsafe workplace condition, or an act of God, the coverage applies.

Workers’ comp insurance provides six basic benefits: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits, vocational rehabilitation, and death benefits.

Non-California employers may need to carry workers’ compensation for workers who are regularly employed in California or whom entered an employment contract here.

An employer may purchase workers’ compensation insurance from any of the privately licensed insurers authorized to write policies in California. A list of authorized insurers can be found on the California Department of Insurance website.

If you are a business owner or manager with questions about the legal requirements of workers’ compensation, contact an experienced employment law attorney.

Additional Resources:

Employer Rights Blog Article (Dec 30, 2010): “New Workers’ Compensation Regulations in California”

California Division of Workers’ Compensation homepage

California Division of Workers’ Compensation FAQ

Photo: The Library of Congress